Tessera unit cuts jobs, shutters Israeli facility

SAN FRANCISCO—DigitalOptics Corp (DOC)., a subsidiary of technology licensor Tessera Technologies Inc., plans to cut its workforce outside China by up to 40 percent and cease operations at its facility in Tel Aviv, the company said Wednesday.

The job cuts could equal up to 180 jobs out of DigitalOptics's 450-person workforce, not including the firm's workers at its manufacturing operations in Zhuhai, China, Tessera said.

The cost reduction actions are being taken as part of a plan to focus DigitalOptics's efforts on its core MEMS camera module business, which targets the mobile phone market, according to Tessera (San Jose, Calif.). The actions are expected to save the subsidiary $15 million to $18 million per year in operating expenses, Tessera said.

As part of the restructuring, DigitalOptics will also explore the sale of its manufacturing facility in Charlotte, N.C., Tessera said. Both the Charlotte facility and the Tel Aviv facility are not central to the the MEMS camera module business, the firm said.

"Our goal at DOC is to become a significant supplier of next generation camera modules for mobile phones," said Robert Young, Tessera's president and CEO, in a statement. "Camera module features and functions have increasing importance to consumers in the mobile phone market. The changes announced today will focus DOC on that market and are an important part of driving the business towards profitability."